Fuji Electric to ramp up output of next-gen power chips for EVs

SiC semiconductors can withstand higher voltages than silicon-based products

Advanced power semiconductors reduce energy loss, promising to let electric vehicles drive farther with smaller batteries.   © Reuters

TOKYO -- Fuji Electric plans to increase production capacity for next-generation power semiconductors by around 10 times in the four years through fiscal 2024 in anticipation of surging demand for use in electric vehicles and other forms of electrically powered transportation.

The company produces silicon carbide (SiC) chips, which provide a high degree of energy-saving performance. The chips are currently made for such applications as bullet train parts. But as it prepares to supply the automotive industry, it is readying mass production facilities in Japan.

Fuji Electric is focusing on semiconductors used in power control. Next-generation products made from SiC can withstand higher voltages than conventional silicon offerings and significantly reduce power loss.

For EVs, they hold the promise of longer ranges and smaller batteries. Fuji Electric's Matsumoto plant in Nagano Prefecture already makes the semiconductors and will gradually increase production starting in fiscal 2022.

In addition, a new production line for the chips will also be installed at a factory run by subsidiary Fuji Electric Tsugaru Semiconductor in Aomori Prefecture. That site will begin mass production in fiscal 2024.

A Fuji Electric unit in Aomori Prefecture will be one of the sites producing SiC power chips. (Photo courtesy of Fuji Electric)

These steps will increase SiC power semiconductors as a share of Fuji Electric's chip sales to around 10% by fiscal 2025. The company aims to capture 20% of the global SiC power semiconductor market by mid-decade.

Several companies have already decided to adopt the chips for their electric-powered vehicles. In January, Fuji Electric said its investment in power semiconductors will total 190 billion yen ($1.4 billion) over the five years through fiscal 2023 -- up 60% from the original plan.

"We will closely watch conditions, including whether we see an upside in the current fiscal year, and make strong investments," President Shiro Kondo said, suggesting that investment could be expanded even further.

The global market for power semiconductors is expected to expand 160% from 2021 to 5.35 trillion yen in 2030, according to market research firm Fuji Keizai. Of this, such next-generation power semiconductors as SiC products are expected to account for more than 1 trillion yen in 2030.